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Avocado Ltd Produces Small Electronic Components for Kitchen Appliances

Question 94

Multiple Choice

Avocado Ltd produces small electronic components for kitchen appliances. Two of its products are Component Y and Component Z. The selling price of Component Y is $15, and the selling price of Component Z is $20. The variable cost per unit for Component Y is $8 and the variable cost per unit of Component Z is $11. The machine hour requirement and demand for the two products are: Avocado Ltd produces small electronic components for kitchen appliances. Two of its products are Component Y and Component Z. The selling price of Component Y is $15, and the selling price of Component Z is $20. The variable cost per unit for Component Y is $8 and the variable cost per unit of Component Z is $11. The machine hour requirement and demand for the two products are:   Avocado Ltd's production capacity is 6500 machine hours per month. The optimal product mix is: A)  1000 units X, 1500 units Y. B)  0 units X, 2167 units Y. C)  1000 units X, 2500 units Y. D)  1500 units X, 1000 units Y.
Avocado Ltd's production capacity is 6500 machine hours per month. The optimal product mix is:


A) 1000 units X, 1500 units Y.
B) 0 units X, 2167 units Y.
C) 1000 units X, 2500 units Y.
D) 1500 units X, 1000 units Y.

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